MEKO presents adjusted financial targets and priorities to strengthen its leading position

21 March 2023 07:30

Today, MEKO arranges a Capital Markets Day where the company management presents adjusted financial targets. The adjustments confirm the company's successful model for long-term value creation and reflect MEKO's strategy for continued profitable growth. During the Capital Markets Day, the management also explains in more detail how MEKO plans to strengthen its position as a market leader in the independent vehicle aftermarket in northern Europe.

"MEKO's proven strategy of growing organically and through carefully selected acquisitions has created value for many years. Part of the strategy is to expand in new markets where the margins may be structurally somewhat lower but where we improve the profitability of the companies we acquire over time. A natural consequence is that the group's operating margin becomes diluted during transition periods at the same time as the operating profit increases in absolute terms. This is a successful model for value creation that plays a central role as we now intensify work to strengthen MEKO's market-leading position for the future. By adjusting our financial targets, we both confirm our value-creating ability and clarify MEKO's path forward towards long-term increased profitability," says Pehr Oscarson, President and CEO of MEKO.

The updated financial targets indicate that a net sales corresponding to approximately SEK 19 billion and an adjusted EBIT of approximately SEK 1.6 billion should be achieved in 2027, excluding any major strategic acquisitions.

MEKO’s long-term financial targets to 2027:

Growth (clarified) Operating results (adjusted) Net debt (unchanged) Dividend policy (clarified)
Average annual sales increase of at least 5 percent.To be achieved through a combination of organic growth and smaller acquisitions. Larger strategic acquisitions are not included. Annual growth of adjusted EBIT of at least 10 percent. Net debt in relation to operating profit (EBITDA) should long-term be in the range of 2.0 – 3.0 times. The corresponding 50 percent of the profit after tax is distributed.Consideration should be taken to acquisition opportunities, financial position, investment needs and possible share buybacks.

For further information, please contact;

Pehr Oscarson, president and CEO of MEKO AB
Phone: +46 (0)8 464 00 20

Fredrik Sätterström, IRO MEKO
Phone: +46 (0)70 51 01 022

Anders Oxelström, Director of Communications (Interim)
Phone: + 46 73 522 52 42

This information is such information that MEKO AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contactperson set out above on March 21, 2023 at 07:30 CET. This press release will be published in Swedish and English. The Swedish version represents the original version and has been translated into English.

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